Why aren't people willing to accept the fact their homes won't appraise for what they did 5 years ago?

People are pricing their homes to high to begin with. For instance, we put an offer on a home Friday. Home originally was priced at $150K but the seller reduced the price to 130K. We got the appraisal team to give us an estimate on what the home will likely appraise at and it came back at 128K, no more. This is because some of the comps in the neighborhood were bank owned, selling anywhere from 65K to 110K. My agent pulled comps from other neighborhoods but the same school district that faired better but all in all, 128 would be the highest. So instead of dropping their price, they are refusing and sticking to the 130. They paid 190K for the home in 2005 and made major updates and I understand not wanting to give their home away for pennies but why are they unwilling to drop their price a miniscule amount (relatively)? The first category choice when I asked this question was the LGBT section. Weird... I know it's not selling an IPod but the home is vacant, winter is rolling around (Michigan), utilities still have to be kept on, maintenance, snow plowing etc. Doesn't make sense to me...

4 weeks ago - 2 answers